Municipal advertisement levy held outside service tax because it is a statutory charge, not consideration for a taxable service.

A municipal corporation's charge for sale of space or time for advertisement was treated as a statutory levy within municipal powers, not consideration for a service. On that basis, the Tribunal followed earlier decisions concerning Nagar Nigam authorities and held that the activity fell outside the ambit of service tax. The impugned levy was therefore not exigible to service tax, and the demand could not be sustained.

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Issues: Whether service tax was payable on the fee charged by a municipal corporation for sale of space or time for advertisement.

Analysis: The dispute was treated as settled by earlier Tribunal decisions concerning Nagar Nigam authorities. Those decisions held that the amount charged by the municipal body was a statutory levy within its municipal powers and did not represent consideration for any service. On that basis, the activity was found outside the ambit of service tax.

Conclusion: Service tax was not payable on the impugned levy, and the demand could not be sustained.

Final Conclusion: The impugned order was set aside and the appeal succeeded.

Ratio Decidendi: A statutory levy imposed by a municipal authority for advertisement rights does not amount to consideration for a taxable service and is therefore not exigible to service tax.

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